Is Southern Steer permitted to adjust the required property insurance policies and amounts periodically?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
nted to You Limit $ 100,000 Any One Premises
Medical Expense Limit $ 5,000 Any One Person
Workers Compensation:
Bodily Injury by Accident: $100,000 Each Accident Bodily Injury by Disease: $ 500,000 Policy Limi
Source: Item 8 — ITEM. 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–24)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer can adjust the required property insurance policies and amounts periodically. The FDD specifies that franchisees must purchase and maintain insurance policies in the amounts and terms set out in the Brand Manual or as otherwise prescribed by Southern Steer.
As of the date of the 2025 Disclosure Document, Southern Steer requires franchisees to maintain property insurance of $135,000 per Southern Steer Business location. The document explicitly states that these policies and amounts prescribed by Southern Steer may be adjusted periodically by them. Franchisees are also required to name Southern Steer and its affiliates as additional insureds.
This means that a prospective Southern Steer franchisee should be aware that the cost of property insurance may change over time, potentially impacting their operating expenses. It is common practice in franchising for franchisors to retain the right to modify insurance requirements to ensure adequate coverage and protect the brand. Franchisees should factor in potential insurance cost increases when projecting their business's profitability.